DEFRAIL TECHNOLOGIES LIMITED – IPO
About Defrail Technologies Limited
Defrail Technologies Limited is a rubber components and assemblies manufacturing company based in Faridabad, Haryana. It specializes in producing industrial rubber hoses, moulded parts, and assembled products used in automotive, railways, and defence sectors. The company operates two manufacturing plants in Faridabad and is an RDSO-approved vendor (approved July 8, 2024), allowing it to supply to Indian Railways – a strategic advantage for access to government contracts.
Read full DRHP here: CLICK
IPO Details Table
| Detail | Explanation | Data |
|---|---|---|
| IPO Type | SME IPO (smaller company listing) | BSE SME listing only |
| IPO Opening Date | When bidding starts | Friday, Jan 9, 2026 |
| IPO Closing Date | Last day to apply | Tuesday, Jan 13, 2026 |
| Price Band | Min–max offer price | ₹70 – ₹74 per share |
| Face Value | Nominal value per share | ₹10 per share |
| Issue Size | Total money being raised | ₹13.77 Crore (approx) |
| Issue Structure | Shares on offer | 18,60,800 shares (100% Fresh) |
| Fresh Issue | New shares for company | ₹13.77 Cr (all to company) |
| Offer for Sale (OFS) | Shares sold by existing shareholders | NIL (Zero) |
| Lot Size | Minimum bid quantity | 1,600 shares (~₹1,12,000 at ₹70) |
| Retail Investment (Min) | 1 lot minimum | ₹1,12,000 (1,600 × ₹70) HIGH |
| Maximum Retail Can Buy | 2 lots for retail | 3,200 shares (~₹2,24,000 at ₹70) |
| Listing Date (Tentative) | Shares start trading | Friday, Jan 16, 2026 |
| Promoters | Company founders | Vivek Aggarwal, Abhishek Aggarwal, Ashi Aggarwal, Dinesh Aggarwal |
| Registrar | Handles allotment | Maashitla Securities Pvt Ltd |
| Lead Manager | IPO coordinator | NEXGEN Financial Solutions Pvt Ltd |
REGISTRAR DETAILS
IPO Registrar: Maashitla Securities Pvt Ltd CLICK HERE
IPO Timeline
| Event | Date |
|---|---|
| DRHP Filed | Sep 29, 2025 |
| IPO Opens | Fri, Jan 9, 2026 |
| IPO Closes | Tue, Jan 13, 2026 |
| Basis of Allotment | Wed, Jan 14, 2026 |
| Refunds Start | Thu, Jan 15, 2026 |
| Shares in Demat | Thu, Jan 15, 2026 |
| Listing Date | Fri, Jan 16, 2026 |
Business Model & Revenue Model
How Defrail Technologies Makes Money
Core products:
- Diesel, petroleum, and LPG hoses
- Rubber moulded parts (gaskets, grommets, air intake hoses)
- EPDM profiles and sponge rubber components
- Railway-specific products (Air Brake Hose Coupling, Brake Pipe, Feed Pipe)
Customers:
- Automotive OEMs (Maruti, Hyundai, Tata Motors, etc.)
- Indian Railways (via RDSO approval)
- Defence sector
- Industrial machinery manufacturers
Revenue model:
- B2B: Long-term contracts with large automotive companies
- B2G: Direct government contracts with Railways & Defence via RDSO approval
- OEM supply: Regular orders from original equipment manufacturers
Key Business Advantage:
- RDSO approval enables participation in Indian Railways’ supply chain (high-value, structured contracts)
- Diversified customer base across multiple industries
- Government e-Marketplace (GeM) registration for government tenders
Key Financial Metrics (Consolidated Snapshot)
| Metric | FY24 (2023-24) | FY25 (2024-25) | H1 FY26 (Sep 2025) | Trend |
|---|---|---|---|---|
| Revenue | ₹0.72 Cr | ₹62.22 Cr | ₹39.08 Cr | Explosive growth! |
| EBITDA | ₹0.14 Cr | ₹5.78 Cr | ₹3.44 Cr | Growing |
| Profit After Tax | ₹0.11 Cr | ₹3.42 Cr | ₹1.51 Cr | Profitable |
| Total Assets | ₹1.22 Cr | ₹33.91 Cr | ₹37.22 Cr | Growing |
| Net Worth/Equity | ₹0.16 Cr | ₹9.12 Cr | ₹10.62 Cr | Strengthening |
| Total Debt | ₹0.41 Cr | ₹11.56 Cr | ₹11.78 Cr | Moderate |
Key Financial Ratios & Analysis
| Metric | Value | What It Means |
|---|---|---|
| Revenue Growth (CAGR) | 86x in 1 year | EXPLOSIVE growth |
| EBITDA Margin | 8.94% | Reasonable for manufacturing |
| PAT Margin | 5.49% | Moderate (typical for manufacturers) |
| ROE (Return on Equity) | 73.72% | VERY HIGH (but due to small equity base + leverage) |
| ROCE | 24.43% | Good capital efficiency |
| Debt-to-Equity | 1.27 | MODERATE LEVERAGE (not too high, not too low) |
| EPS (Earnings Per Share) | ₹6.62 | Profitable on per-share basis |
Strengths of Defrail Technologies
“Tricks” That Help Defrail Win
| Strength | Why It Matters |
|---|---|
| RDSO Approval (July 2024) | Opens Indian Railways market; high-value, long-term contracts guaranteed |
| Growing Rapidly | 86x revenue growth in 1 year shows market acceptance |
| Profitable From Start | Turned profitable immediately (not a loss-making startup) |
| Government Market Access | GeM registration + RDSO = B2G revenue stream |
| Experienced Promoters | 14-16 years industry experience reduces execution risk |
| Diversified Products | Multiple product lines reduce customer concentration |
| Manufacturing Integration | Two plants with advanced machinery (economies of scale) |
| ISO Certified | Quality certifications enhance credibility |
Key Risks & Concerns for Investors
“Tricks” That Could Hurt Defrail
| Risk | Severity | Why It Matters |
|---|---|---|
| Very Young Company | HIGH | Incorporated Oct 2023; less than 2.5 years old |
| Limited Track Record | HIGH | Only 1 year of substantial revenues; profitability unproven long-term |
| High Debt-to-Equity | MEDIUM | D/E of 1.27 means significant debt; vulnerable to downturns |
| Margin Compression | MEDIUM | PAT margin declining 15% → 5%; cost pressure visible |
| SME Liquidity Risk | HIGH | Listed on BSE SME only (not NSE/BSE Main); hard to buy/sell |
| Employee Cost Risk | MEDIUM | Salaries are significant expense; profit could evaporate if revenue drops |
| Commodity Input Risk | MEDIUM | Rubber prices fluctuate; could squeeze margins |
| RDSO Concentration | HIGH | If Railways revenue is large %, loss of contract = revenue collapse |
| Founder Overhang | HIGH | Promoters selling only 26%; if they lock-in expires and sell massively, stock falls |
| Valuation at IPO | MEDIUM | P/E of 15-17x seems reasonable but depends on sustained growth |
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.